Service Tax Act : Section 67, 67A, 68, 69 and 70

As on 24.10.2013

1[67. Valuation of taxable services for charging Service tax

1 Substituted (w.e.f. 18.04.2006) by s. 68 of the Finance Act, 2006 (21 of 2006).

(1) Subject to the provisions of this Chapter, service tax chargeable on any taxable service with reference to its value shall, -

(i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him;
(ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration;
(iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner.

(2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.

(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service.

(4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed.

Explanation. - For the purposes of this section, -
(a) "consideration" includes any amount that is payable for the taxable services provided or to be provided;
1(b) [ * * * ]

1 Omitted (w.e.f 1.7.2012) by s.143 of the Finance Act.. 2012 ( 23 of 2012).Notification No 19/2012-ST dated 5-6-2012


(c) "gross amount charged" includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and 2[book adjustment, and any amount credited or debited, as the case may be, to any account, whether called "Suspense account" or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise.]]

2 Substituted (w.e.f. 16.05.2008) by s. 90 of the Finance Act, 2008 (18 of 2008).

3 '67A.

The rate of service tax, value of a taxable service and rate of exchange, if any, shall be the rate of service tax or value of a taxable service or rate of exchange, as the case may be, in force or as applicable at the time when the taxable service has been provided or agreed to be provided.

3 Inserted wef 28.5.2012 by the Finance Act, 2012

Explanation. - For the purposes of this section, "rate of exchange" means the rate of exchange service and referred to in the Explanation to section 14 of the Customs Act, 1962.';

4[68. Payment of service tax

4 Substituted by s.116 of the Finance (No 2) Act, 1998 (21 of 1998)
However, as per S 158 of the Finance Act, 2003, during the period commencing on and from the 16th day of July, 1997 and ending with the 16th day of October, 1998 the provisions of S 68 of the Finance Act, 1994 as modified by section 116 of the Finance Act, 2000, shall have effect and be deemed always to have had effect subject to the following further modifications, namely :-
In section 68, in sub-section (1), the following proviso shall be inserted at the end and shall be deemed to have been inserted on and from the 16th day of July, 1997, namely :-
"Provided that -
In relation to services provided by a clearing and forwarding agent, every person who engages a clearing and forwarding agent and by whom remuneration or commission (by whatever name called) is paid for such services to the said agent for the period commencing on and from the 16th day of July,1997 and ending with the 16th day of October, 1998; or
In relation to services provided by goods transport operator, every person who pays or is liable to pay the freight either himself or through his agent for the transportation of goods by road in a goods carriage for the period commencing on and from the 16th day of November, 1997 and ending with the 2nd day of June, 1998,
a. Shall be deemed always to have been a person liable to pay service tax, for such services provided to him, to the credit of the Central Government."

(1) Every person providing taxable service to any person shall pay service tax at the rate specified in section 12[66B ]in such manner and within such period as may be prescribed.

12.Substituted for the figures "66" by the Service T ax (Removal of Difficulty)Order ,2012 w.e.1-7-2012 vide order No .1/2012 dated 15-6-2012

(2) Notwithstanding anything contained in sub-section (1), in respect of 5'such taxable service as may be notified 11 ]' by the Central Government in the Official Gazette6, the service tax thereon shall be paid by such person and in such manner as may be prescribed at the rate specified in section 66 and all the provisions of this chapter shall apply to such person as if he is the person liable for paying the service tax in relation to such service.]

5 Substituted (w.e.f. 1.7.2012 ) by s.143 of of the Finance Act.. 2012 (23 of 2012)
6 The Central Government vide Notification No. 36/2004-S.T., dated 31-12-2004 has notified certain services for the purposes of sub-section (2) of s. 68 of the Finance Act, 1994. For text of Notification see serial (xv) of this Part.
11. See Notification No 30/2012-ST, dated 20.6.2012 for notified services.
12.Substituted for the figures "66" by the Service T ax (Removal of Difficulty)Order ,2012 w.e.1-7-2012 vide order No .1/2012 dated 15-6-2012

7 "Provided that the Central Government may notify the service and the extent of service tax which shall be payable by such person and the provisions of this Chapter shall apply to such person to the extent so specified and the remaining part of the service tax shall be paid by the service provider.";

7 Inserted (w.e.f 1.7.2012) by s.143 of the Finance Act.. 2012 ( 23 of 2012)

8[69. Registration -

8 Substituted by s. 116 of the Fiance (No. 2) Act, 1998(21 of 1998).

9[(1)] Every person liable to pay the service tax under this chapter or the rules made there under shall, within such time and in such such manner and in such form as may be prescribed, make an application for registration to the 10[Superintendent of Central Excise.]

9 Renumbered (w.e.f. 13.05.2005) by s. 88 of the Finance Act, 2005 (18 of 2005).
10 Substituted (w.e.f. 16.07.2001) for the words "Central Excise Officer" by s. 137 of the Finance Act, 2001 (14 of 2001).

1[(2) The person or class of persons notified under sub-section (2) of section 69, shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.]

1 Inserted (w.e.f. 13.05.2005) by s. 88 of the Finance Act, 2005 (18 of 2005).

2[70. Furnishing of Returns3

2 Substituted (w.e.f. 16.07.2001) by s. 137 of the Finance Act, 2001 (14 of 2001).
3 The following section 71A providing for filing of Return by certain customers was inserted for the period 16-7-1997 to 16-10-1998 by s. 158 of the Finance Act, 2003 and shall have effect and be deemed always to have had effect from 16-7-1997. " SECTION 71A. Filing of return by certain customers.- Notwithstanding anything contained in the provisions of section 69 and 70, the provisions thereof shall not apply to a person referred to in the proviso to sub-section (1) of section 68 for the filing of return in respect of service tax for the respective period and service specified therein and such person shall furnish return to the Central Excise Officer within six months from the day on which the Finance Bill, 2003 receives the assent of the President in the prescribed manner on the basis of the self assessment of the service tax and the provisions of section 71 shall apply accordingly."

4[(1) Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency 5[and with such late fee not exceeding 6[two thousand rupees,] for delayed furnishing of return, as may be prescribed.]

4 Renumbered as sub section (1) by the Finance Act, 2005(w.e.f. 13.05.2005) by s. 88 of the Finance Act, 2005 (18 of 2005).
5 Substituted (w.e.f. 11.05.2007) by s. 135 of the Finance Act, 2007 (22 of 2007).
6 Substituted (w.e.f. 8-4-2011) for the words "two thousand rupees" by s. 74 of the Finance Act, 2011 (8 of 2011).

.7[(2) The person or class of persons notified under sub-section (2) of section 69, shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.]9

7 Inserted (w.e.f. 13.05.2005) by s. 88 of the Finance Act, 2005 (18 of 2005).
9. see Rule 4 of Registration of Special Category of Persons)Rules 2005(Form ST-3)

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